Sound Bites: the case for inflation and Canadian stocks

Ad blocking detected

Thank you for visiting We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Ultra Club
$500/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

In my interview this week with Jim Goddard at, I make the case that increases in government spending may wake the inflation bear out of its hibernation. In such an environment, the Canadian stock market could do quite well.

Already, Canadian stocks are enjoying the tailwinds of global economic growth being led by China and Ottawa's policy of sending out bigger handouts to lower and middle income families. Over the past 90 days, the INK Canadian Insider Index is up 7.5% while the S&P 500 Index is up 3.6%. Looking at Chinese loan growth, we see no evidence that a meaningful slowdown is taking place. That should continue to help the resource sectors of the Canadian market.

Meanwhile, the federal government has pledged to start indexing child benefits two years earlier than expected. If our take on inflation proves correct, those bigger cheques will come in handy and help sustain positive momentum behind Canadian retailers.


In the discussion, we talked about the possibility that we are now in a period of peak Amazon (AMZN*US). While the company reported flat earnings per share for the quarter on a year-over-year basis last night, investors in after hours trading cheered the results because they were better than expectations (which had gone through a series of revisions lower). If the stock gaps up at the open, it will be interesting to see if it goes on to make new all-time highs or instead ends up closing the gap back down. The stock currently has a Mixed INK Edge outlook, suggesting things could go either way. If it closes the gap instead of breaking out, it could be another sign that the US market may be set to underperform Canadian stocks as we head to year-end.

Listen to or download the interview below. You can also catch it on's YouTube channel.

Running sneakers | Nike Off-White

Comment On!

Upload limit is up to 1mb only
To post messages to your Socail Media account, you must first give authorization from the websites. Select the platform you wish to connect your account to (via Easy Blurb).